Market Matters Blog
DTN Weekly Average DDG Price Higher Again
OMAHA (DTN) -- The average price for domestic distillers dried grains (DDG) from the 40 locations DTN contacted with spot offers for the week ended Aug. 27 was $140 per ton, up $5 versus the prior week.
DDG prices climbed higher again this week as the cash corn price rose, with the DTN National Corn Index up 20 cents versus one week ago. Domestic demand has strengthened, and tight supplies in some spots are also adding to the higher DDG prices. Some plants will be heading into fall maintenance, adding to the tight supply.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Aug. 27 was 113.87% versus the five-year average of 109.00%. The value of DDG relative to soybean meal was 47.87%. The cost per unit of protein for DDG was $5.19, compared to the cost per unit of protein for soybean meal at $6.21.
In their weekly export DDGS report, U.S. Grains Council said, "Industry sources note limited supply and some short covering continue to help the barge market firm. Barge CIF NOLA offers are up $7 per metric ton for September positions and up $4 for October/November. FOB Gulf offers are largely steady this week as buyers remain quiet. Exporters say containers are offered at a discount to bulk vessels, particularly for Asian destinations, but that bulk prices have limited downside risk due to tight supplies and elevations expected this fall."
The Energy Information Administration said Wednesday ethanol inventory in the U.S. moved higher, edging up 0.5% in the week ended Aug. 21 as demand declined 0.7% and production increased for a second straight week to mark a three-week high. Ethanol plant production was up 5,000 barrels per day (bpd) in the week profiled to a three-week-high 931,000 bpd, which was 10.3% lower than the corresponding week in 2019. Four-week average output is down 111,000 bpd against year ago at 926,000 bpd.
NOTE: All prices listed below can change at any time and are subject to confirmation from seller.
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 8/28/2020 | 8/19/2020 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $155 | $152 | $3 | |
| Wet | $78 | $76 | $2 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri Subject | Dry | $150 | $150 | $0 | |
| Wet | $78 | $75 | $3 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $155 | $145 | $10 | |
| Indiana | Dry | $145 | $140 | $5 | |
| Iowa | Dry | $133 | $130 | $3 | |
| Michigan | Dry | $145 | $135 | $10 | |
| Minnesota | Dry | $135 | $125 | $10 | |
| North Dakota | Dry | $125 | $120 | $5 | |
| New York | Dry | $150 | $145 | $5 | |
| South Dakota | Dry | $125 | $110 | $15 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $145 | $140 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $145 | $145 | $0 | |
| Iowa | Dry | $125 | $125 | $0 | |
| Michigan | Dry | $135 | $135 | $0 | |
| Minnesota | Dry | $126 | $126 | $0 | |
| Missouri | Dry | $155 | $155 | $0 | |
| Ohio | Dry | $145 | $145 | $0 | |
| South Dakota | Dry | $126 | $126 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $140 | $130 | $10 | |
| Wet | $45 | $40 | $5 | ||
| Illinois SEPT | Dry | $153 | $150 | $3 | |
| Nebraska | Dry | $140 | $130 | $10 | |
| Wet | $45 | $40 | $5 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $142 | $135 | $7 | |
| Indiana | Dry | $142 | $135 | $7 | |
| Iowa | Dry | $135 | $125 | $10 | |
| Michigan | Dry | $140 | $130 | $10 | |
| Minnesota | Dry | $133 | $125 | $8 | |
| Nebraska | Dry | $145 | $130 | $15 | |
| New York | Dry | $155 | $150 | $5 | |
| North Dakota | Dry | $125 | $120 | $5 | |
| Ohio | Dry | $150 | $140 | $10 | |
| South Dakota | Dry | $125 | $110 | $15 | |
| Wisconsin | Dry | $140 | $135 | $5 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $158 | $158 | $0 | |
| Iowa | Dry | $0 | $0 | $0 | |
| Minnesota | Dry | $0 | $0 | $0 | |
| Nebraska | Dry | $0 | $0 | $0 | |
| Ohio | Dry | $147 | $147 | $0 | |
| South Dakota | Dry | $0 | $0 | $0 | |
| California | Dry | $0 | $0 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $210 | $208 | $2 | |
| *Prices listed per ton. | |||||
| Weekly Average | $140 | $135 | $5 | ||
| The weekly average prices above reflect only those companies DTN | |||||
| collects spot prices from. States include: Missouri, Iowa, Nebraska, | |||||
| Kansas, Illinois, Minnesota, North Dakota, South Dakota, Michigan, | |||||
| Wisconsin and Indiana. Prices for Pennsylvania, New York and | |||||
| California are not included in the averages. | |||||
**
| VALUE OF DDG VS. CORN & SOYBEAN MEAL | |||
| Settlement Price: | Quote Date | Bushel | Short Ton |
| Corn | 8/27/2020 | $3.4425 | $122.95 |
| Soybean Meal | 8/27/2020 | $294.90 | |
| DDG Weekly Average Spot Price | $140.00 | ||
| DDG Value Relative to: | 8/28 | 8/19 | |
| Corn | 113.87% | 116.31% | |
| Soybean Meal | 47.47% | 45.65% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.19 | $5.00 | |
| Soybean Meal | $6.21 | $6.23 | |
| Notes: | |||
| Corn and soybean prices take from DTN Market Quotes. DDG price | |||
| represents the average spot price from Midwest companies | |||
| collected on Thursday afternoons. Soybean meal cost per unit | |||
| of protein is cost per ton divided by 47.5. DDG cost per unit | |||
| of protein is cost per ton divided by 27. | |||
Mary Kennedy can be reached at mary.kennedy@dtn.com
Follow her on Twitter @MaryCKenn
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